Slide 1: Third Quarter 2021 Earnings Call
November 4, 2021 APTIV Third Quarter 2021 Earnings Call
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation, as well as other statements made by Aptiv PLC (the “Company”), contain forward-looking statements that reflect, when made, the Company’s current views with respect to current events, certain investments and acquisitions and financial performance. Such fo
Slide 3: Third Quarter Highlights
Third Quarter Highlights SUSTAINED OUTPERFORMANCE DESPITE THE CHALLENGING ENVIRONMENT REVENUE (23%) 3Q GLOBAL $3.7B $11.5B VEHICLE PRODUCTION; FLAT FULL YEAR 3Q down 5% YTD up 24% +18% 3Q GoM EBITDA RECORD GROWTH OVER MARKET EXECUTING WELL DESPITE $412M $1.5B BENEFITING FROM MACRO TRENDS AND FAVORAB
Slide 4: Aptiv Evolution
Aptiv Evolution BUILDING A MORE SUSTAINABLE BUSINESS SHAREHOLDER ANNUAL TOTAL RESULTING IN SUSTAINABLE VALUE CREATION +$40B VALUE CREATED SINCE IPO +25% SHAREHOLDER RETURN SINCE IPO1 +950% SHAREHOLDER RETURN SINCE IPO 2011 IPO 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 PORTFOLIO ALIGNED WITH
Slide 5: Navigating Through The Challenging Environment
Navigating Through The Challenging Environment CURRENT ENVIRONMENT IS CREATING OPPORTUNITIES TO IMPROVE AND TRANSFORM ENHANCING LONG-TERM …WHILE EFFECTIVELY MANAGING RESILIENCY OF OUR BUSINESS … THROUGH THE DISRUPTIONS • Centralized Supply Chain Resiliency Team focused on • Dedicated 24 hour global
Slide 6: Winning Across the Portfolio
Winning Across the Portfolio RECORD YEAR-TO-DATE BOOKINGS, DESPITE CONTINUED INDUSTRY CHALLENGES BOOKINGS Lifetime gross program revenues, $ Billions ADVANCED SAFETY SIGNAL & POWER & USER EXPERIENCE SOLUTIONS $8.1 $7.5 ENCOMPASSES OUR DEEP EXPERTISE LEVERAGES OUR HERITAGE AS A IN CENTRALIZED COMPUTI
Slide 7: Advanced Safety & User Experience
Advanced Safety & User Experience APPLYING EXPERTISE IN SENSING, SOFTWARE AND CENTRALIZED COMPUTE TO ENABLE NEXT GENERATION FEATURES AND FUNCTIONALITY 3Q 2021 HIGHLIGHTS • Growth Over Market: 16% MULTI-PURPOSE INTERIOR SENSING SOLUTIONS FOR MERCEDES-BENZ • Lower sales volume driven by supply chain s
Slide 8: Signal & Power Solutions
Signal & Power Solutions EXPANDING LEADERSHIP POSITION IN ELECTRIFIED ARCHITECTURE SOLUTIONS 3Q 2021 HIGHLIGHTS • Growth Over Market: 19% • Favorable platform mix and content gains in all regions • Robust industrial end market outgrowth SALES GROWTH DRIVERS1 3Q 2021 FY 2021E HIGH VOLTAGE ELECTRIFICA
Slide 9: Aptiv Software
Aptiv Software DELIVERING NEW SOLUTIONS AND BUSINESS MODELS TO ENABLE THE SOFTWARE-DEFINED VEHICLE TRANSFORMATION TO A DELIVERED THROUGH A FLEXIBLE, ...ACROSS APPLICATIONS, BASE SOFTWARE-DEFINED VEHICLE MODULAR SOFTWARE APPROACH… SOFTWARE AND MIDDLEWARE TODAY LEVERAGING OUR LEADING POSITION IN HARDW
Slide 10: 3Q 2021 vs. 3Q 2020
3Q 2021 vs. 3Q 2020 ($ Millions, except per share amounts) 3Q 2021 3Q 2020 3Q 2021 COMMENTS REPORTED REVENUE $3,654 $3,668 • Vehicle production down (23%)4 Adjusted Growth %1 | Growth Over Market (5%) | 18% 3% | 7% • AS&UX 16% GoM, S&PS 19% GoM EBITDA2 $412 $581 • COVID & supply chain disruption cos
Slide 11: 3Q 2021 Revenue
3Q 2021 Revenue ROBUST GROWTH OVER MARKET IN ALL REGIONS REVENUE REGIONAL GROWTH $ Millions Adjusted Growth1 | Growth Over Market (GoM) (5%) Adj 1 18% GoM N. AMERICA EUROPE CHINA2 ($43) (7%) Adj (9%) Adj (3%) Adj $171 16% GoM 19% GoM 17% GoM ($142) $3,668 $3,654 3Q 2020 Volume FX / Comm Price 3Q 202
Slide 12: 3Q 2021 Segment Recap
3Q 2021 Segment Recap ONGOING SUPPLY CHAIN DISRUPTIONS WEIGH ON SALES GROWTH AND MARGINS ADVANCED SAFETY & USER EXPERIENCE SIGNAL & POWER SOLUTIONS $ Millions $ Millions REVENUE EBITDA2 OP INCOME2 REVENUE EBITDA2 OP INCOME2 (4%)1 (7%)1 (26%) (38%) (42%) (70%) $2,656 $2,705 $471 $1,020 $959 $110 $348
Slide 13: 2021 Guidance
2021 Guidance CONFIDENT IN UPDATED FULL YEAR OUTLOOK ($ Millions, except per share amounts) FY 2021 FY 2020 FY 2021 COMMENTS REPORTED REVENUE $15,100 – 15,500 $13,066 • Vehicle production flat4 Adj. Growth %1 | Growth Over Market 10%+ | 10%+ (9%) | 10% • Continued strong outgrowth EBITDA2 $1,940 – 2
Slide 14: Balance Sheet Strength
Balance Sheet Strength STRONG LIQUIDITY POSITIONS APTIV FOR CONTINUED INVESTMENTS IN GROWTH AND CUSTOMER SUPPORT OPERATING CASH FLOW DEBT & CASH PROFILE $ Billions Q3’21 Actuals ($ Billions) MAINTAINING ABILITY TO PURSUE OPPORTUNITIES TO DRIVE REVENUE GROWTH $0.3 ($0.4) • 0.6x NET DEBT / $X EBITDA1
Slide 15: 2022 Considerations
2022 Considerations WELL-POSITIONED FOR LONG-TERM RECOVERY APTIV FINANCIAL STRATEGY REMAINS UNCHANGED $ RELEVANT PORTFOLIO ADDRESSING INDUSTRY’S TOP CHALLENGES + SUSTAINED GOM DRIVEN BY EV, ADAS MITIGATION ACTIONS AND PERFORMANCE INVESTMENTS TO SUPPORT AND CONNECTIVITY INITIATIVES FUTURE GROWTH DISC
Slide 16: Summary
Summary CONTINUED EXECUTION IN A DIFFICULT ENVIRONMENT INVESTMENTS SUPPORT CONTINUED STRONG GROWTH OVER MARKET Investments to support customer production and new launches translating into revenue outperformance as well as stronger win rates and record bookings WELL-POSITIONED TO NAVIGATE THROUGH DYN
Slide 17: Appendix
» APPENDIX
Slide 18: YoY Revenue Growth Metrics
YoY Revenue Growth Metrics 3Q 2021 YTD 2021 Reported net sales % change -% 30% Less: foreign currency exchange and commodities 5% 6% Less: divestitures and other, net -% -% Adjusted revenue growth (5%) 24% Reflective of management estimates due to integration of businesses 3Q 2021 YTD 2021 Reported
Slide 19: YoY Revenue And Adj. OI By Segment Walks
YoY Revenue And Adj. OI By Segment Walks 3Q 2021 YTD 2021 ($ millions) Revenue OI Adj Revenue OI Adj 3Q 2020: Signal And Power Solutions 2,656 322 6,421 404 Volume, net of contractual price reductions (111) (68) 1,669 595 FX and commodities 160 (7) 483 (73) Operational performance - (11) - 58 Other
Slide 20: Non-US GAAP Financial Metrics
Non-US GAAP Financial Metrics ($ millions) 3Q 2021 3Q 2020 YTD 2021 YTD 2020 Net income attributable to Aptiv 101 299 559 1,505 Interest expense 36 38 114 125 Other (income) expense, net (1) (1) (2) 6 Income tax expense (benefit) 25 (2) 101 (6) Equity loss, net of tax 51 24 146 40 Net income attribu
Slide 21: Non-US GAAP Financial Metrics
Non-US GAAP Financial Metrics ($ millions) 3Q 2021 3Q 2020 YTD 2021 YTD 2020 Net income attributable to Aptiv 101 299 559 1,505 Interest expense 36 38 114 125 Income tax expense (benefit) 25 (2) 101 (6) Net income attributable to noncontrolling interest 3 6 11 2 Depreciation and amortization 193 192
Slide 22: Non-US GAAP Financial Metrics
Non-US GAAP Financial Metrics ($ millions, except per share amounts) 3Q 2021 3Q 2020 YTD 2021 YTD 2020 Net income attributable to ordinary shareholders 86 283 512 1,486 Mandatory convertible preferred share dividends 15 16 47 19 Net income attributable to Aptiv 101 299 559 1,505 Adjusting items: Res
Slide 23: Shares Outstanding
Shares Outstanding (millions) 3Q 2021 3Q 2020 YTD 2021 YTD 2020 Weighted average ordinary shares outstanding, basic 270.51 270.03 270.44 261.22 Dilutive shares related to RSUs 0.69 0.35 0.70 0.28 Weighted average MCPS Converted Shares - - - 5.64 Weighted average ordinary shares outstanding, includin
Slide 24: Non-US GAAP Financial Guidance Metrics
Non-US GAAP Financial Guidance Metrics ($ millions) 20211 Net income attributable to Aptiv 665 Interest expense 149 Other income, net (1) Income tax expense 125 Equity loss, net of tax 205 Net income attributable to noncontrolling interest 14 Operating income 1,157 Restructuring 55 Other acquisition
Slide 25: Non-US GAAP Financial Guidance Metrics
Non-US GAAP Financial Guidance Metrics ($ millions) 20211 Net income attributable to Aptiv 665 Interest expense 149 Income tax expense 125 Net income attributable to noncontrolling interest 14 Depreciation and amortization 790 EBITDA 1,743 Other income, net (1) Equity loss, net of tax 205 Restructur
Slide 26: Non-US GAAP Financial Guidance Metrics
Non-US GAAP Financial Guidance Metrics ($ millions, except per share amounts) 20211 Net income attributable to ordinary shareholders 602 Mandatory convertible preferred share dividends 63 Net income attributable to Aptiv 665 Adjusting items: Restructuring 55 Other acquisition and portfolio project c
Slide 27: “APTIV:
“APTIV: